Quinn offshoot forced to hold egm on Anglo stake
€200m dividend to tycoon's children went towards absorbing bank-related losses
THE company used by Sean Quinn's family to buy their Anglo Irish Bank stake was forced to hold an extraordinary general meeting last February, such was the scale of losses arising from the investment.
It has also emerged that the entire €200m dividend paid to Sean Quinn's five children in 2008 has gone into this company, called Quinn Finance, to mainly absorb Anglo-related losses.
The Quinn group said yesterday that a deficit in Quinn Finance would be addressed over time and the company continued to trade. Quinn Finance, which is unlimited, held an extraordinary meeting on February 18, 2009, to discuss the implications of the losses.
Auditors of Quinn Finance said the results for 2008 and the balance sheet showed there was a material uncertainty that could "cast significant doubt about the company's ability to continue as a going concern''. The auditors, PricewaterhouseCoopers, placed what is known as an 'emphasis of matter' note on the accounts.
Quinn Finance is a finance company of the Quinn family which provided finance to acquire the family's interest in Anglo Irish, the Quinn Group said yesterday. A spokesman added: "As such the results for the period include the impact of the losses incurred on that investment, hence the inclusion of the matter of emphasis in the audit report. This was not related to the performance of the family's property portfolio which continues to be satisfactory.''
In previous years Quinn Group advanced loans to Quinn Finance. However, these were fully provided against and reflected in the Quinn Group accounts in 2007 and 2008. There will be no further impact on the results of Quinn Group, the spokesman said.
It was reported late last year that Sean Quinn's five children shared a €200m payout from the main Quinn Group holding company, covering 2008.
Mr Quinn's five children -- Colette, Sean Jr, Ciara, Aoife and Brenda -- are believed to own about one-fifth of Quinn Group, which controls the bulk of the family's business interests.
Sean Quinn, the company's founder, said recently in a message to staff that he hoped some day to float Quinn Group.
Mr Quinn said in the message: "I have previously indicated my intention to convert this group into a publicly quoted company, probably through two IPOs, before my retirement as chairman, and the shareholders and directors have long supported that proposal.''
"I believe that such a move will be in the best long-term interests of the Group, its employees and its shareholders. We have now decided that this proposal will be implemented by the end of 2015, at which point we expect to be trading at record levels of profitability,'' he added.